Xerox was concerned over the loss of a number of things that come with the down sizing of the company due to the economy and employees leaving for other reasons. Xerox needed a way to retain the data employees took with them when they leave the company. By implementing a knowledge management system current employees could be much more efficient by not having to reinvent the wheel and having place to find information that people across the company had put into the system not having to rely just on the engineers located in their home office.
The ultimate reason the company implemented the system was the same any other company would bring in a KM system and that reason is money. By having a larger group of people working on problems and pooling data into the system the more efficient employees will make fewer costly mistakes.
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